Stock Analysis

Earnings Update: Coloplast A/S (CPH:COLO B) Just Reported Its Annual Results And Analysts Are Updating Their Forecasts

CPSE:COLO B
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Investors in Coloplast A/S (CPH:COLO B) had a good week, as its shares rose 6.3% to close at kr.909 following the release of its full-year results. It was a credible result overall, with revenues of kr.27b and statutory earnings per share of kr.22.46 both in line with analyst estimates, showing that Coloplast is executing in line with expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Coloplast

earnings-and-revenue-growth
CPSE:COLO B Earnings and Revenue Growth November 8th 2024

Taking into account the latest results, the most recent consensus for Coloplast from 19 analysts is for revenues of kr.29.3b in 2025. If met, it would imply a meaningful 8.5% increase on its revenue over the past 12 months. Per-share earnings are expected to ascend 14% to kr.25.50. In the lead-up to this report, the analysts had been modelling revenues of kr.29.1b and earnings per share (EPS) of kr.26.27 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

The consensus price target held steady at kr.911, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Coloplast analyst has a price target of kr.1,030 per share, while the most pessimistic values it at kr.700. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Coloplast shareholders.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 8.5% growth on an annualised basis. That is in line with its 8.9% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 7.0% per year. So although Coloplast is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at kr.911, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Coloplast analysts - going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Coloplast that we have uncovered.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.